(RTTNews) - Monday, WuXi PharmaTech (Cayman) Inc.(WX: News ) posted a higher third quarter profit on higher revenues and lower losses from discontinued operations. Looking ahead, the company reaffirmed its revenue outlook for the fiscal 2009.

WuXi PharmaTech's third quarter net income surged to $14.3 million or $0.19 per ADS from $7.3 million or $0.10 per ADS in the year ago period.

The company for the quarter posted an increase in income from continuing operations to $14.5 million or $0.19 per ADS from $8.4 million or $0.12 per ADS in the same quarter last year.

Net income for the quarter included a loss from discontinued operations of $0.2 million resulted from a write-off of certain obsolete assets. Prior quarter results last year included $1.2 million of loss from discontinued operations related to the biologics manufacturing business.

Excluding the impact of one-time items, income for the quarter rose to $17.6 million or $0.24 per ADS, compared to $13.2 million or $0.18 per ADS in the prior year quarter.

On average, six analysts polled by Thomson Reuters expected the company to earn $0.15 per share for the quarter. Analysts estimates typically exclude one-time items.

Total net revenues was $70.0 million, up from $63.7 million in the comparable quarter last year. Eight analysts expected revenue of $70.22 million for the quarter.
Quarterly revenue rose 10%,primarily due to a 20% growth in Laboratory Services net revenues, partially offset by a 44% decline in Manufacturing Services net revenues.

In the recent quarter, operating income increased 35% year over year to $14.6 million from $10.8 million contributed by a 18% increase in gross margin. Gross margin improved year over year to 41.1% from 38.4%, mainly due to lower amortization expenses for acquired intangible assets for the quarter.

For the nine months period, the company reported net income of $40.7 million or $0.55 per ADS, compared to $29.6 million or $0.41 per ADS in the prior year. Year-to-date revenue increased to $196.14 million from $189.03 million last year.

Looking forward, the company reaffirmed its full year expectation for net revenues to range between $265 million and $275 million. Analysts expect the company to post revenues of $269.49 million for the full year 2009.

WX closed Monday's regular trading at $14.86, down $0.87 or 5.53% on a volume of 1.15 million shares on the NYSE.In the after hours the stock is trading up $1.64 or 11.04% at $16.50.

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by RTT Staff Writer

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